Firm quote is a quote displayed at which the dealer is obligated to buy or sell at least one round lot at the quoted price.
Applying "Firm Quote" to Securities Exams:
When a market market enters a quote over the NASDAQ work station or one who provides a priced quote over the phone without qualifying the quote has presented a firm quote to the market. The market maker is obligated to honor that quote and to trade at those prices. If the market maker fails to honor the quote the market maker has backed away from a a firm quote and has committed a violation of FINRA rules. The firm quote compliance system or FCQS tracks the entry of quotes over the NASDAQ system and is used by FINRA to determine if a firm quote or backing away violation has occurred.